Location: Newton County, MS | Metro: Scott County, MS HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,230 |
| 5 Bedrooms | $1,427 |
| 6 Bedrooms | $1,598 |
| 7 Bedrooms | $1,726 |
| 8 Bedrooms | $1,812 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,150 | $175,825 | 0.65% | D |
U.S. Census Bureau data (2024)
In ZIP 39365, the economics of Section 8 vouchers can be quite straightforward when understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $930. However, the local market rent, based on Census ACS data, is significantly lower at $754.
A Section 8 voucher does not guarantee full payment of the SAFMR. Instead, it covers the difference between the tenant's contribution and the actual rent. The tenant is responsible for paying 30% of their adjusted income towards rent, plus any utility allowances. For example, if a tenant's income is $1,500 per month, they would pay approximately $450 toward rent and utilities.
The voucher will then cover the remaining cost up to the SAFMR. In ZIP 39365, this means that for a two-bedroom unit priced at the SAFMR of $930, the government would reimburse the landlord the difference between the tenant's payment and the SAFMR. If the unit is priced below the SAFMR, say at the local market rate of $754, the government will still only reimburse up to the SAFMR amount, but the landlord could choose to accept less or negotiate a higher rent within reason.
To illustrate, let’s assume the local market rent of $754 for a two-bedroom apartment. If the tenant contributes $450, the government would reimburse the landlord $480 ($930 - $450), leaving the landlord with a surplus of $26 above the local market rent. This surplus can be seen as an incentive for landlords to participate in the program, even though the overall rent might be lower than non-voucher tenants could afford.
However, if the landlord sets the rent at the SAFMR level of $930, and the tenant’s contribution remains at $450, the landlord would receive $480 from the government, resulting in a total of $930. This scenario leaves no surplus or gap for the landlord, aligning perfectly with the SAFMR.
In summary, landlords in ZIP 39365 should understand that the SAFMR is the ceiling for reimbursement, not necessarily the target rent. Setting rents at the local market rate can yield a small surplus, while pricing at the SAFMR ensures full reimbursement without additional profit. Landlords must also factor in the administrative aspects of managing a Section 8 property, which can include regular inspections and adherence to housing quality standards.
The typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 39365, when the rent is set at the local market rate, is a surplus of $26. When the rent is set at the SAFMR, there is neither a surplus nor a gap, as the total rent is fully covered by the tenant's contribution and the government reimbursement.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.